Displaying items by tag: Ash Grove

US: Ash Grove Cement has acquired Geofortis, which operates a raw natural pozzolan milling and classifying line in Toole, Utah, along with a nearby deposit.

President of Ash Grove Cement Serge Smith posted on LinkedIn "Integrating the Geofortis plant and team into the Ash Grove family aligns perfectly with our long-term growth strategy and commitment to sustainability. These high-quality natural pozzolan products complement our existing portfolio and will enable us to offer more environmentally friendly solutions to our customers. This acquisition reinforces our dedication to developing sustainable solutions that build, connect and improve our world."

Canada: Ash Grove Mississauga cement plant has entered a proposal with the Ministry of Environment Conservation and Parks to burn alternative fuels. This includes materials such as construction and demolition materials, paper fibre, wood, plastic and industrial rubber, according to the Insauga newspaper. Local residents have expressed concerns about potential toxicity and environmental impacts due to emissions from the plant entering the atmosphere. The association reportedly objected to a previous application allowing higher emissions levels at the plant. Ash Grove will address these concerns in a public meeting scheduled for 12 September 2024.

US: The Portland Cement Association (PCA) has elected Massimo Toso as its next chair. He is the current president and chief executive officer (CEO) of Buzzi Unicem USA and has worked as the vice chair of the association. He succeeds Filiberto Ruiz, president and CEO of Votorantim Cimentos North America, in the post.

Monica Manolas has been elected as vice chair. She is the first woman in the 21st century to be elected to the position and she currently works as the president of Ash Grove East. Jorge Wagner, CEO of Votorantim Cimentos North America, was also elected to the PCA Board of Directors.

US: Ash Grove Cement plans to build a new cement mill at its cement plant in Durkee, Oregon. The project is scheduled to be completed by the end of 2024. The upgrade is intended to allow the plant to manufacture low-carbon cement products.

Serge Schmidt, the president of Ash Grove Cement, said "The transition to low carbon cement production and reducing our environmental footprint is a top priority for Ash Grove Cement. We are always seeking new ways to improve our sustainability performance while providing high-quality cement solutions to our customers. This state-of-the-art finish mill at our Durkee plant will strengthen Ash Grove's position as a leader in low-carbon cement across the Western US."

US: The Portland Cement Association (PCA) has announced the winners of its 2023 Safety Innovation and Chairman's Safety Performance Awards.

The Safety Innovation Award Program recognises companies that have developed innovative practices, projects and programs that improve safety at cement plants in the US. Entries are judged in five areas: innovation, ease of use and ease of construction, effectiveness and risk prevention. The recipients were:

• Distribution: Continental Cement, Continental Port Allen Terminal, Chesterfield, Missouri
• Quarry: CalPortland Company, CalPortland Oro Grande Plant, Oro Grande, California
• Pyroprocessing: GCC of America, GCC Tijeras Plant, Tijeras, New Mexio
• General Facility: Mitsubishi Cement Corporation, Mitsubishi Cushenbury Plant, Lucerne Valley, California

The Chairman’s Safety Performance Awards are given to member cement plants that did not have a reportable injury or illness during the year. Fifteen plants achieved this in 2023, which represented more than 10% of all active cement facilities in the US and its territories. The recipients were:

• Argos USA, Atlanta, Georgia
• Argos USA, Newberry, Florida
• Argos Puerto Rico Corp, Dorado, Puerto Rico
• Ash Grove Cement Company (CRH), Durkee, Oregon
• Ash Grove Cement Company (CRH), Midlothian, Texas
• Buzzi Unicem USA, Chattanooga, Tennessee
• Buzzi Unicem USA, Maryneal, Texas
• CalPortland Company, Rillito, Arizona
• GCC of America, Odessa, Texas
• Heidelberg Materials, Bellingham, Washington
• Martin Marietta Materials, New Braunfels, Texas
• Martin Marietta Materials, Midlothian, Texas
• Martin Marietta Materials, Tehachapi, California
• National Cement Company of California, Kern, California
• St Marys Cement (Votorantim), Detroit, Michigan

US: Ash Grove Cement has won funding for a US$15.2m front-end engineering design (FEED) study for a carbon capture installation at its 2Mt/yr Foreman cement plant in Arkansas. Parent company CRH said that the study will run for 24 months from its date of commencement. The project team also includes consultancy and research firms Advanced Resources International and Crescent Resource Information, as well as non-profit interstate policy organisation Southern States Energy Board. Equipment suppliers will include France-based industrial gases company Air Liquide and energy company Sargent & Lundy, while electricity provider Talos will participate as an energy sector stakeholder.

The Foreman cement plant carbon capture FEED study is one of eight projects selected by the US Department of Energy to receive part of a US$189m funding pot for carbon capture demonstrations across US industry.

US: The Environmental Protection Agency (EPA) has announced that 10 cements plants have received its Energy Star certification in 2022 from a total of 86 manufacturing plants across all industries. The certification is awarded to the top 25% performers in energy efficiency in each sector. The EPA cited examples of how Titan America’s Troutville plant in Virginia and its Medley plant in Florida had converted production to Portland Limestone Cement (PLC), and achieved a 12% reduction in electricity use and an 18% reduction in CO2 emissions, respectively, thanks to improved energy management. It also mentioned Cemex’s Miami plant in Florida, which increased its energy performance in 2022 by modifying a finish mill, optimising the ball charge on the largest mill and identifying and correcting potential energy losses while also increasing the production of PLC.

Cement plants awarded the Energy Star certification in 2022 include: Drake Cement’s Paulden plant and Salt River Materials Group’ Clarkdale plant in Arizona; GCC’s Pueblo plant in Colorado, Cemex’s Miami plant and Titan America’s Medley plant in Florida; Argos USA’s Harleyville plant in South Carolina; GCC’s Rapid City plant in South Dakota; Buzzi Unicem USA’s Chattanooga plant in Tennessee; Titan America’s Troutville plant in Virginia; and Ash Grove Cement’s Seattle plant in Washington.

US: CRH-subsidiary Ash Grove Cement has appointed Fernando Valencia as Vice President of Manufacturing – Central Ashgrove. He previously worked as a plant manager at LafargeHolcim’s Ste Genevieve plant in Missouri and the Portland Plant at Florence in Colorado. Prior to this he was the plant manager of Holcim US’ Hagerstown Plant in Maryland and also worked as a commissioning manager. Valencia holds a degree in mechanical engineering from the Anahuac University Network and a master’s degree in business administration from the University of Missouri - St Louis.

Holcim agreed to sell its Indian assets to Adani Group this week for US$6.37bn. These include Holcim’s stakes in its local subsidiaries Ambuja Cement and ACC. The deal, if approved by the local competition body, should complete in the second half of 2022. This is one of the larger sales of cement company assets over the last decade. Adani Group, an Indian-based conglomerate with businesses across energy, transport and more, is now poised to become the second largest cement producer in India.

Global Cement Weekly previously covered a potential sale of Ambuja Cement and ACC in April 2022 when the story that Holcim was looking for a buyer first emerged in the Indian press. At the time local press speculated that the sale could generate as much as US$15bn for Holcim. So it is interesting to see that a figure of US$6.37bn has been agreed upon instead, less than half of the speculative figure. Roughly, as ever, this places a value of a little below US$100/t of cement production capacity. This seems like a relatively low pricing for these plants by international standards over the last decade. However, this doesn’t take into account many factors such as, for example, the condition of the plants, Holcim’s desire to change its business, the ease of selling up in India all in one go, other non-cement assets and so on. For Adani Group though, buying into heavy building materials production in a large market like India clearly seemed attractive. It is also worth noting that, similar to other cement sector acquisitions recently, here again is a buyer with a background in another carbon-heavy industry buying into another heavy emitter.

Table 1: Selected large scale acquisitions of controlling shares in non-Chinese cement production assets since 2012. Source: Global Cement news and company releases. Italcementi acquisition value reported by Reuters.

Table 1 above provides some historical context to Adani Group’s agreed acquisition by comparing it to other large completed deals in the cement sector over the last decade. Don’t forget that it is only looking at this from the cement sector. This list excludes changes in ownership in the Chinese cement companies in this period because, generally, there has been a government-driven consolidation in the industry through mergers rather than large-scale acquisitions. So, for example, the world’s current biggest cement producer CNBM had a reported production capacity of 350Mt/yr in 2012 and this rose to 514Mt/yr in 2020 as it absorbed other state-owned companies. The big merger it underwent during this time was with China National Materials (Sinoma) in 2018, primarily an engineering company that also produced cement.

The most obvious trend in Table 1 is the journey of Lafarge and Holcim from their merger in 2015 and the gradual realignment of the business subsequently. During this time the company has sold up in large markets outside of its core regions in Europe and North America. Latterly, it has also started to diversify away from heavy into lightweight building materials. One notable ‘nearly happened’ was LafargeHolcim’s attempt to sell its business in the Philippines to San Miguel Corporation for US$2.15bn in 2019. That deal collapsed when the Philippines Competition Authority failed to approve it within a year of its proposal. CRH enlarged itself from assets sold during the creation of LafargeHolcim and then picked up Ash Grove in the US in 2018. CRH’s head Albert Manifold memorably said in 2018 that his company was focusing on markets in developed countries and CRH’s large-scale acquisitions have largely followed this.

As for the others, HeidelbergCement’s purchase of Italcementi in 2016 almost appeared as a riposte to the formation of LafargeHolcim, albeit on a slightly smaller scale. It confirmed HeidelbergCement’s place as the world’s second largest non-Chinese cement producer. It is also one of the minority of truly multinational acquisitions on this list. Unlike LafargeHolcim and now Holcim though, HeidelbergCement hasn’t exhibited a desire to downsize or diversify at quite the same speed. UltraTech Cement’s acquisition of Jaiprakash Associates in 2017 confirmed its place as the largest Indian producer. That deal was publicly one of the longer lasting one as it originally started out in at least 2014 on a smaller scale and was later slowed down by the Mines and Minerals (Development and Regulation) (MMDR) Amendment Act. Smikon’s purchase of Eurocement in 2021 almost looks like part of the isolation of the Russian economy, especially with the benefit of hindsight given by the invasion of the Ukraine in early 2022.

Mega-deals have lots of moving parts but two of the most tangible to broader audiences are the price and the timing. Cemex infamously got both of these wrong with its acquisition of Rinker in 2007 as it paid high just as the US subprime mortgage crisis started a wider global financial one. This was despite Cemex’s emergence over the previous 15 years as a multinational force to be reckoned with due in part to the so-called ‘Cemex Way’ approach to management, acquisitions and integration. Clear winners from the big acquisitions over the last decade are harder to spot but CRH and UltraTech Cement look strong so far. Adani Group has certainly picked a lively time to make a purchase on this scale following a global pandemic with ongoing global supply chain issues and disruptions to energy and food markets.

Canada: Jean Boulet, the labour minister of Quebec, has called for an end to a long-running labour dispute at Ash Grove’s Joliette cement plant that has been running since mid-2021. Around 130 members of the Unifor union were locked out by management, according to Postmedia Breaking News. In a message on social media Boulet invited the parties to "concentrate their efforts at the negotiation table with a conciliator." The union alleges that company owner CRH has been importing raw materials to make cement from Greece or Turkey whilst the workers have been excluded from the plant. Negotiations will continue in mid-April 2022.